Passive Income

by Mr. Cheap

In addition to my networth statement, I thought I’d do some more details calculations on my passive income. As always, I realize my condo isn’t really passive (since I have to manage it), but the work is infrequent enough (hopefully) that I’m going to classify it as passive instead of treating it like a second job.

I’m calculating (and trying to decrease) my cost of living as well. When my after-tax passive income exceeds my cost-of-living I’ll be able to retire (on the assumptions that my passive income will increase at least as much as inflation and my lifestyle costs will stay the same or decrease).